TaxTMI 
TaxTMI 
2025 (6) TMI 2015
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.... violative of Article 14 and 19 of the Constitution of India and also Section 31 of the Insolvency and Bankruptcy Code, 2016. 3. The instant writ petitions pertain to the same assessee in respect of three different assessment years i.e. 2014-15, 2015-16 and 2016-17. Writ Petition No.1194 of 2023 is in respect of assessment year 2014-15, Writ Petition No.10020 of 2023 is in respect of assessment year 2015-16 and, Writ Petition No.10752 of 2023 is in respect of assessment year 2016-17. 4. So far as the assessment year 2014-15 is concerned, the petitioner was issued with a notice dated 29.06.2021, under Section 148 of the Act intimating the petitioner as regards the decision to propose assess and reassess of the income / loss for the assessment year 2014-15 pertaining to certain incomes chargeable to tax which has escaped assessment within the meaning of Section 147 of the Act. Meanwhile, after the decision of the Hon'ble Supreme Court in the case of Union of India and Others vs. Ashish Agarwal (2023) 1 Supreme Court Cases 617, a fresh notice was issued on 18.05.2022 to the petitioner under Section 148 of the Act. The reason for issuance of the notice was that, certain manipulat....
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.... dated 30.06.2022 passed an order under Section 148A(d) of the Act. Simultaneously, the authorities did issue the notice under Section 148 of the Act on the same day itself i.e. on 30.06.2022. The petitioner thereafter gave a response to the said notice under Section 148 of the Act on 16.08.2022 followed by subsequent notice under clause (b) of Section 148 of the Act on 31.03.2023, followed by the notice under Sub-Section (1) of Section 142 of the Act on 05.04.2023 which has led to the filing of the writ petition. 8. As was the case in the proceedings drawn for the assessment year 2014-15, in the present case also, the petitioner in fact responded to the notices and submitted a detailed reply on 18.06.2022 and it only thereafter that the Income Tax authorities have passed the impugned order for the assessment year 2015-16. Surprisingly, no reasons have been disclosed either in the instant petitions or in any of the submissions as to why in the two detailed responses filed by the petitioner before the Income Tax authorities for both the assessment years vide their reply of the same day dated 18.06.2022, the petitioner did not refer to the proceedings before NCLT or the petitioner....
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....ed counsel for the petitioner also contended that the issue raised in the present writ petitions is squarely covered by the judgment of the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Limited vs. Edelweiss Asset Reconstruction Company Limited (2021) SCC OnLine SC 313 which is the basis on which the judgments have been passed by this High Court as also by many other High Courts. 13. According to the learned counsel for the petitioner, in view of Section 31 of the Insolvency and Bankruptcy Code, the resolution plan which stands approved by the NCLT would be binding on all Corporate Debtors as also the other creditors including the Central Government or any State Government or any local authorities to whom the debt or payment of dues are owed by the petitioner. According to the learned counsel for the petitioner, even if they are liable to make any payment to the Income Tax Department, but now that the resolution plan has been approved by the NCLT, the entire liability if any stands extinguished in view of the Insolvency and Bankruptcy Code having an overriding effect. Thus, the learned counsel for the petitioner prayed for an appropriate relief. 14. A....
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....stances, upon issuance of an order of approval of the resolution plan by the NCLT under the Insolvency and Bankruptcy Code, all the liabilities that stood due to all the creditors would stand extinguished upon passing of the resolution plan by the NCLT. The said aspect would be applicable in the instant case as well, and the law in this regard is by now well settled, those which have been relied upon by the learned counsel for the petitioner starting from the judgment of the Hon'ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Limited (supra) and those which have been passed by this High Court also. 19. However, what we need to consider at this juncture is, the reasons for which the reopening of the assessment has been proposed and initiated. Going by the information collected, it was found that the petitioner is said to have undertaken both sale as well as purchase trades from at least eight contracts. On further scrutiny certain characteristics were reflected and all these characteristics are what have been reflected in the paragraph No.4 of this order. The authorities found that the transactions inter se between all these eight contracts were of similar natu....
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....milar circumstances, in the case of Dishnet Wireless Ltd. vs. Assistant Commissioner of Income-tax (ODS) [2022] 139 taxmann.com 493 (Madras) in paragraph No.29 and 34 to 39, it was held as under, viz., "29. The Resolution Plan submitted on behalf of the petitioners by the Insolvency Resolution Professional under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 on 21.05.2019 has not contemplated any concession from the Income Tax Department though Notices under Section 148 of the Income Tax Act, 1961 had already been issued during March, 2018. ............... 34. The provisions of Insolvency and Bankruptcy Code, 2016 (IBC) cannot be interpreted in a manner which is inconsistent with any other law in the time being in force. 35. Therefore, Corporate Insolvency Resolution Plan sanctioned and approved cannot impinge on the rights of the Income Tax Department to pass any fresh Assessment Order under Section 148 read with Sections 143(3) and 147 of the Income Tax Act, 1961. 36. Therefore, the proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be pressed into service to dilute the rights of the Income Tax Departmen....